Gold Resource Corporation Liquidity Update
December 02 2024 - 4:56PM
Business Wire
Gold Resource Corporation (NYSE American: GORO) (the “Company”)
announces an update to the operational and liquidity matters that
were reported at the end of the third quarter.
During the month of November, the Company has seen an
improvement in production at the Don David Gold Mine (“DDGM”) as
compared to earlier in the fourth quarter. Strategic mine planning
succeeded in providing sufficient mining faces, and issues with the
filter press and mill have been addressed for the time being. The
improved production during the month, combined with high metal
prices and the favorable US dollar to peso exchange rate, allowed
the mine to operate at slightly better than break-even cash flow
during the month. While the Company’s available cash balance
remains a concern, based on recent performance at the mine, the
Company currently expects that operations at DDGM could continue
through at least the first quarter of 2025 without immediate
capital infusions.
The Company still requires additional funding for mining
equipment, mill upgrades and working capital to develop the Three
Sisters and Splay 31 areas that will be the basis for future
production at DDGM. Without additional capital, the Company
currently expects that DDGM will not be able to operate near
break-even cash flow beyond the first quarter of 2025. If any
significant unforeseen production or processing challenges were to
materialize at DDGM, the Company’s ability to continue to operate
DDGM in the near-term would be further jeopardized. Various
financing and funding options are currently being evaluated by the
Company.
The Company has also identified an overpayment by DDGM of Mexico
taxes in 2023 and has submitted a tax refund request for
approximately $3.8 million ($76 million pesos). This amount is
expected to be refunded to the Company in 2025, although the exact
timing of payment is unpredictable.
About GRC:
Gold Resource Corporation is a gold and silver producer,
developer, and explorer with its operations centered on the Don
David Gold Mine in Oaxaca, Mexico. Under the direction of an
experienced board and senior leadership team, the Company’s focus
is to unlock the significant upside potential of its existing
infrastructure and large land position surrounding the mine in
Oaxaca, Mexico and to develop the Back Forty Project in Michigan,
USA. For more information, please visit the Company’s website,
located at www.goldresourcecorp.com.
Forward-Looking Statements:
This press release contains forward-looking statements that
involve risks and uncertainties. The statements contained in this
press release that are not purely historical are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Exchange Act of 1934,
as amended. When used in this press release, the words “plan,”
“target,” “anticipate,” “believe,” “estimate,” “intend” and
“expect” and similar expressions are intended to identify such
forward-looking statements. Such forward-looking statements
include, without limitation, (i) the Company’s ability to achieve
approximately break-even cash flow at DDGM through the first
quarter of 2025, (ii) the Company’s anticipated near-term capital
needs and potential sources of capital, and (iii) the timing and
amount of an anticipated tax refund in Mexico. All forward-looking
statements in this press release are based upon information
available to Gold Resource Corporation as of the date of this press
release, and the Company assumes no obligation to update any such
forward-looking statements. Forward-looking statements involve a
number of risks and uncertainties, and there can be no assurance
that such statements will prove to be accurate. The Company’s
actual results could differ materially from those discussed in this
press release. Also, there can be no assurance that production will
continue at any specific rate. Forward-looking statements are
subject to risks and uncertainties, including the possibility of
unforeseen production or processing challenges at DDGM, such as
mechanical breakdowns, staffing shortages, weather events,
unexpected decreases in grade, lower than anticipated production at
existing mining faces, or inability or delays in opening new mining
faces; the ability of the Company to obtain additional capital on
favorable terms or at all; the possibility of lower than
anticipated revenue or higher than anticipated costs at DDGM;
volatility in commodity prices and exchange rates; and declines in
general economic conditions. Additional risks related to the
Company may be found in the periodic and current reports filed with
the Securities and Exchange Commission by the Company, including
the Company’s Annual Report on Form 10-K for the year ended
December 31, 2023, which are available on the SEC’s website at
www.sec.gov.
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version on businesswire.com: https://www.businesswire.com/news/home/20241202173766/en/
Chet Holyoak Chief Financial Officer Chet.Holyoak@GRC-USA.com
www.GoldResourceCorp.com
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